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Mexico Launches Bold Plan
To Swap $2.5 Billion in Debt

MEXICO CITY -- Mexico, in a bold move to slash its foreign-debt costs, offered to exchange new securities for as much as $2.5 billion of its debt.

The offer, which will test the limits of investor demand for long-term Mexican securities, would restructure only a small amount of Mexico's staggering $100 billion foreign-debt load. But Finance Minister Guillermo Ortiz said "this could be the first in a series of operations." He added in an interview that Mexico could win "substantial savings of up to 10%,"...